Vertical analysis of financial statements reveals the relationship of each statement item to a specified base,which is the 100% figure.

Name: Vertical analysis of financial statements reveals the relationship of each statement item to a specified base,which is the 100% figure.
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Question

Quizplus · Accepted Answer

This is the correct definition of vertical analysis. The purpose is to show the percentage relationship of each line item to a base, usually the total assets or total sales, expressed as 100%.

Vertical Analysis of Financial Statements Reveals the Relationship of Each